Factors influencing the Use of Mobile Payments in Tanzania: Insights from Zantel’s Z-pesa services.

Abstract

M-payments, which refer to payments over a mobile device, have not taken off as fast as expected in Tanzania, especially in the case of Zantel Telecommunication Company. The slow adoption rate raises many questions about what drives consumer behaviour.   Therefore, it is necessary to investigate factors influencing the intention to use Zantel’s Z-pesa services. The methodology used to conduct this study included the review of the literature and primary data comprising 120 customers using a questionnaire, 10 customers were subjected to a telephone interview and one person from Management at Zantel was interviewed. Analysis of the findings revealed that there were several factors that hinder the adoption and usage of Z-pesa service: perceived ease of use, perceived usefulness, perceived cost, perceived mobility, perceived trust and   perceived expressiveness. The study concludes with recommendations to address the challenges facing adoption and usage of Z-pesa services. They include:  recruitment of more agents countrywide to make the service more available and accessible, instalment of new technology that allow users of M-payment services to access cash through automated teller machine (ATMs), investment in state of the art technology to minimize or eliminate system failures or network problems, frequent training and support to Z-pesa agents to overcome operational problems and recruitment of more companies to accept Z-pesa payments.

Keywords: Mobile payments, Influencing factors, Technology Usage, Z-pesa